LUXEMBOURG / RankWire.AI / – In the second quarter of 2026, European Union business registrations decreased, while bankruptcy filings saw a sharp increase. Seasonally adjusted data indicate that new registrations dropped by 0.5% compared to the previous quarter. Conversely, bankruptcy declarations grew by 5.7% during the same period. On August 17, Eurostat released these quarterly figures, highlighting the contrasting trends between new business formations and formal insolvency proceedings. The statistics encompass companies and other legal business entities across the EU economy.
The euro area mirrored the broader EU trend in the second quarter. Registrations declined slightly by 0.1% from the first three months of 2026, while bankruptcy declarations rose by 6.9%. These figures follow declines in both measures during the first quarter, when EU registrations fell by 0.9% and bankruptcy declarations decreased by 2.4%. The recent results thus represent a second consecutive quarterly drop in registrations and a rebound in bankruptcy filings.
Trends in business registrations varied considerably across the eight sectors included in the data. The manufacturing sector experienced the largest quarterly decline, with registrations down 3.6%. Accommodation and food services saw a 3.4% decrease, while education and social services declined by 3.2%. The information and communication sector registered the strongest growth, increasing by 8.8%, and the construction sector grew by 1.0%. Financial services remained unchanged from the previous quarter.
Most sectors see an uptick in bankruptcy declarations
Five out of eight sectors reported higher bankruptcy filings during the second quarter. Education and social activities experienced the largest rise, at 21.1%. Transport followed with an 11.4% increase, and financial services grew by 6.8%. Meanwhile, three sectors registered declines: accommodation and food services fell by 2.6%, construction by 1.7%, and trade by 1.2%.
National registration data also revealed notable disparities among EU member states. Luxembourg experienced the steepest quarterly drop, with new registrations falling by 24.2%. Lithuania recorded a decrease of 12.4%, and Denmark’s registrations declined by 8.2%. Ireland led the growth with a 20.4% increase, followed by Belgium at 8.2% and Sweden at 7.6%. These national figures reflect differences in administrative registration systems and quarterly changes within each country.
Insolvency rates vary widely across EU nations
Bankruptcy data also showed significant variation among countries reporting second-quarter figures. Estonia experienced the largest quarterly increase at 31.8%, with Greece close behind at 31.6%. Croatia saw a 20.5% rise, while Malta recorded the most substantial decline, dropping 50.0%. Cyprus decreased by 41.7%, and Slovakia’s insolvencies fell by 33.5%. In smaller economies, percentage changes can seem particularly large due to the relatively low number of bankruptcy declarations involved.
Eurostat collects data on registrations and bankruptcy declarations based on formal administrative and legal records rather than final business outcomes. A registration indicates a legal entity entering the business register during the quarter. A bankruptcy declaration signifies the initiation of a formal insolvency process under national regulations. This does not necessarily mean that a business immediately ceases operations or closes permanently. Since 2021, EU member states have been required to submit these quarterly statistics under European business statistics regulations.